Citigroup Raises SPW Target To $83, Reiterates Hold Rating

Citigroup is raising its PT on SPX Corporation SPW to $83 (from $71) while reiterating its Hold rating. “We believe it is still too early to buy this name,” Citigroup writes. “Overall there were a number of puts and takes in the update from Hold-rated SPX at its NYC analyst meeting with 74% of its businesses exposed predominantly to still-lagging mid-to-late cycle markets. “Our key takeaway is that the expected earnings lift at SPX is likely getting pushed out later to 2012 and beyond vs. the bull case that you have to buy it now. The disappointments from the meeting were that transformer pricing is still weak, thermal project profitability is expected to be lumpy and down in 2011, and guidance implies weak incremental margins of just 13% by our estimates.” SPX Corporation closed Wednesday at $75.13.